Musharraf is covering his ass both at home and abroad. Ironically, it seems that it is in his and the CIA's interest to keep OBL alive. I'm beginning to wonder how much clandestine funding is going into Pakistan to keep Msharraf alive.
http://jang.com.pk/thenews/sep2003-daily/27-09-2003/main/main8.htm ISLAMABAD: Pakistan expects another $500 million debt write off from the United States. Sources said discussions on the loan write-off would take place during the forthcoming visit of Prime Minister Zafarullah Jamali to Washington. Finance Minister Shaukat Aziz would accompany the delegation for talks on bilateral, economic, trade and investment relations.
The US had already written off $1 billion debt that Islamabad owed to Washington in recognition of Pakistani efforts as a frontline ally against terrorism. Under the same principle, the US had approved another $200 million Economic Support Fund (ESF), as part of $395 million package approved for Islamabad in 2003 budget, to pay down additional debt of about $500 million out of the remaining loan of $1.8 billion.
Senior official sources said the government would prefer to utilise the $3 billion five-year US package, beginning 2004, to seek further write offs. "As the country rating goes up, more funds would be needed to pay down the remaining loan," the sources said.
The US provided the $200 million under ESF last year to write off one billion dollar, but due to better sovereign ratings of the country, the same amount would help reduce the debt by $500 million.
The government expects further rating upgrade from the Standard and Poors and Moody’s once the lingering dispute over the Legal Framework Order is resolved, and losses incurred by the public sector entities are stemmed, mainly in the power sector.
The successful privatisation of major oil and gas companies, banks and one generation and electricity companies in the coming months would also be another plus factor in the ratings assessments.
The US has proposed $600 per annum facility for Pakistan for five years, beginning 2004. Exactly half of this amount would be under the Economic Support Fund, out of which the government can utilise two-thirds for debt relief. "It would be better if we front-load the debt waiver option to get maximum benefit available right now," the official sources said.